Everyone knows that the economy has its grip on the meetings and events industry. Although the outlook for 2010 hints towards optimism and recovery, suppliers still need to be prepared to face some of the challenges and trends the recession has prompted over the past year. Here’s what to anticipate according to details from MPI’s yet to be released FutureWatch 2010:
• The need for flexibility. Many corporations will still be somewhat hesitant when it comes to planning and executing meetings due to tight budgets and more scrutinized cost control. The result for suppliers is shorter lead times as well as rigid contract negotiations that allot protection for cancellations, which are still likely to occur as organizations make last minute decisions and budget cuts.
• Continued low rates. It comes as no surprise that the top priority for planners when selecting destinations is the overall cost of the meeting, with the top concern of US planners being the hotel rates themselves. Suppliers can therefore expect the demand for low rates and promotions to prevail, which will continue to be attractive to planners looking for a deal.
• ROI justification. As the amount of meetings being planned begins to increase, so will suppliers’ workload and overall productivity, requiring greater effort and efficiency. Meeting planners are not going to commit if they can’t be guaranteed a high ROI justification for their clients, which puts the pressure on suppliers to perform.
• More RFPs. Once again, as the demand for meetings grows, so will the flow of RFPs into suppliers’ hands. Suppliers are going to have to effectively manage and respond to RFPs if they want to follow through on leads and generate more business.
• The value of meetings. Even though the industry faced harsh criticism in light of the recession, 2009 highlighted the importance and value of face to face meetings. Organizations recognized this and will continue to seek suppliers that can provide better, high quality meetings that will not only contribute to profits but also yield a better overall experience for attendees.
Even if some of these factors end up being minor issues in 2010, the one thing everyone can look forward to is the fact that 39% of suppliers see gradual growth in their businesses for this year, in addition to about a third of them planning to rev up their sales and marketing efforts or work to renew commitments and relationships with clients. With this generally optimistic outlook and assertive attitude towards the new year, suppliers will hopefully begin to regain their footing sooner than expected.
• The need for flexibility. Many corporations will still be somewhat hesitant when it comes to planning and executing meetings due to tight budgets and more scrutinized cost control. The result for suppliers is shorter lead times as well as rigid contract negotiations that allot protection for cancellations, which are still likely to occur as organizations make last minute decisions and budget cuts.
• Continued low rates. It comes as no surprise that the top priority for planners when selecting destinations is the overall cost of the meeting, with the top concern of US planners being the hotel rates themselves. Suppliers can therefore expect the demand for low rates and promotions to prevail, which will continue to be attractive to planners looking for a deal.
• ROI justification. As the amount of meetings being planned begins to increase, so will suppliers’ workload and overall productivity, requiring greater effort and efficiency. Meeting planners are not going to commit if they can’t be guaranteed a high ROI justification for their clients, which puts the pressure on suppliers to perform.
• More RFPs. Once again, as the demand for meetings grows, so will the flow of RFPs into suppliers’ hands. Suppliers are going to have to effectively manage and respond to RFPs if they want to follow through on leads and generate more business.
• The value of meetings. Even though the industry faced harsh criticism in light of the recession, 2009 highlighted the importance and value of face to face meetings. Organizations recognized this and will continue to seek suppliers that can provide better, high quality meetings that will not only contribute to profits but also yield a better overall experience for attendees.
Even if some of these factors end up being minor issues in 2010, the one thing everyone can look forward to is the fact that 39% of suppliers see gradual growth in their businesses for this year, in addition to about a third of them planning to rev up their sales and marketing efforts or work to renew commitments and relationships with clients. With this generally optimistic outlook and assertive attitude towards the new year, suppliers will hopefully begin to regain their footing sooner than expected.
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